LDV announced today that it is to reapply for administration in order to protect the assets of the business.
According to a statement, LDV’s directors have been forced to make the application because finance required to maintain the company is not being made available by Weststar, the Malaysian outfit that stepped in to buy the West Midlands van maker in May.
During that period, the government approved a four-week bridging loan worth £5m to assist Weststar with its proposed takeover of LDV. At the time, the government stipulated that the loan was a one-off financing agreement that could not be extended.
Britain’s largest union, Unite, has urged the government to intervene once more to help Weststar complete its purchase of LDV.
Dave Osborne, national officer for Unite, said: ‘After all the hard work that has gone in to trying to secure the LDV plant, it is extremely worrying that its future is once again at risk. The failure of Weststar to secure financial support from the banks for its takeover of the van manufacturer puts thousands of jobs across the Midlands at risk again.
‘We understand that Weststar is now looking to the government to help underwrite its application to the banks for finance. We urge the government, through BERR, to support this application and do all that it can to help Weststar complete its purchase quickly so that a future can be secured for this plant and its workforce.’